Polaris Reports Record First Quarter 2013 Results
Polaris continued its torrid sales pace in the first quarter of 2013 with net sales of $745.9 million, an increase of eleven percent from last year’s first quarter sales of $673.8 million.
“We are pleased that consumers and enthusiasts around the world continued to make Polaris their brand and product of choice during the first quarter of 2013. While Off-Road Vehicles (“ORVs”) and motorcycles faced challenging 2012 comparisons, we were again able to outpace the industry and increase market share in both product lines,” says Scott Wide, Polaris’ chairman and CEO. “Our snowmobile business also generated strong retail sales and market share growth during the first quarter.
“During the quarter, we also launched the highly anticipated Polaris Brutus and Bobcat utility vehicles, co-developed with Bobcat. We are pleased with the vehicles’ performance and the initial market reaction from dealers and customers has been positive. Shipments to both the Bobcat and Polaris’ new commercial channels will begin in April.”
Off-Road Vehicle (ORV) sales increased seven percent from the first quarter 2012 to $541.3 million. According to Polaris, this increase reflects continued market share gains driven by new product offerings, including the Ranger XP 900 and Ranger 800 mid-size utility vehicles. Polaris’ North American ORV unit retail sales were up single digits percent from the very strong mid-twenties percent increase in the first quarter last year. Retail sales for side-by-sides continued to grow during the quarter, but ATVs experienced a slight decline in retail sales in the 2013 first quarter compared to a strong double digits percent increase in the 2012 first quarter. Both ATVs and side-by-side vehicles continued to gain market share again in North America during the first quarter 2013.
Polaris estimates North American industry ORV retail sales in the first quarter 2013 declined single digits percent with core ATV industry retail sales down double digits percent during the quarter primarily attributable to unseasonably warm weather in 2012 and a late start to the spring in 2013. Sales of ORVs outside of North America decreased two percent in the first quarter 2013 when compared to the first quarter 2012, primarily due to weaker industry conditions in Australia and Europe.Snowmobile sales totaled $14.7 million for the 2013 first quarter compared to $4.6 million for the first quarter of 2012. The North American snowmobile industry finished the season strong with industry retail sales up over 20 percent in the 2013 first quarter and up mid-single digits percent for the entire season ending March 31, 2013 due to more normal snowfall levels and later snow cover this snowmobile riding season. Polaris’ North American retail snowmobile sales once again outpaced the industry, resulting in increased market share for the season ending March 31, 2013 and four percent lower season-end North American dealer inventories for Polaris snowmobiles. During the quarter, the Polaris introduced eight new model year 2014 snowmobiles, including seven all-new models under the Indy name. Sales to customers outside North America increased over 100 percent in the first quarter 2013 as Polaris moved additional product into the Scandinavian and Russian markets where snowfall levels drove healthy snowmobile retail sales increases.